Rekor Systems (REKR) investor relations material

Executive summary

• Q2 2026 revenue was $12.7 million, up 23% sequentially and 2% year-over-year, with H1 2026 revenue at $22.9 million, up 6% year-over-year, driven by recurring revenue growth and expanded deployments.

• Adjusted EBITDA loss narrowed by 79% year-over-year to $1.2 million in Q2 2026, and net loss for Q2 was $0.6 million, a significant improvement from $8.7 million in Q2 2025.

• Cost reduction initiatives, including a 20% headcount reduction, are nearly complete, with savings reflected in the run rate and further efficiencies expected in H2 2026.

• Focus remains on recurring revenue growth, execution, and achieving profitability, with management reaffirming adjusted EBITDA profitability expected in H2 2026.

• Substantial doubt exists about the ability to continue as a going concern over the next twelve months without additional capital or refinancing.

Financial highlights

• Q2 2026 revenue: $12.7 million (up 23% sequentially, 2% year-over-year); H1 2026 revenue: $22.9 million (up 6% year-over-year).

• Recurring revenue grew 14% in Q2 to $6.7 million and 21% in H1 to $13.3 million, outpacing total revenue growth.

• Adjusted gross margin improved to 56% in Q2 2026 from 50% in Q2 2025, driven by higher-margin software and recurring revenue.

• Adjusted EBITDA loss for Q2 was $1.2 million, a $4.6 million or 79% improvement year-over-year.

• Net loss for Q2 2026 was $0.6 million, compared to $8.7 million in Q2 2025.

Outlook and guidance

• Management expects to achieve adjusted EBITDA profitability in H2 2026, assuming continued execution and cost discipline.

• Anticipate further cost efficiencies and recurring revenue expansion in the second half of 2026.

• Full benefit of cost reductions to be realized in Q3 and Q4 2026.

• There is substantial doubt about the ability to continue as a going concern without additional capital or refinancing.

• The company is evaluating refinancing options for $15 million in Series A Prime Revenue Sharing Notes maturing December 2026.